Google Offers is testing a new loyalty program. I’ve written it up on Marketing Land. Right now only a handful of SF Bay Area businesses are participating. They’re all prior Google Offers merchants.
Google will email the prior consumer-buyers of these deals with a new loyalty offer. The following is a mock up: $8 off two purchases at Sonoma Chicken Coop.
Here’s how it works mechanically:
- Consumer-users (previous buyers of a Google Offer) receive an email with the new loyalty offer
- They save it to their accounts
- They’re asked to register a credit card (there’s probably already one on file if they’ve bought an offer). However for the trial period you can only use MasterCard
- Consumers are asked to use the registered card at the local business or retailer
- Once the condition is met (e.g., two visits) a rebate shows up on the credit card statement
There’s no presentation of the offer in paper form or via mobile at the register. It all happens in the background. The merchant doesn’t have to track redemptions either. Google will provide the data after the fact.
MasterCard is sending consumer purchase data to Google. Google will then show the aggregated purchase data to merchants, who will know how well the Offer/loyalty Offer worked. It provides a new level of “transparency” to merchant-advertisers about the efficacy of Offers (and later other types of ads).
The program is noteworthy as a loyalty complement to conventional daily deals. As an aside, Google told me that merchants will have significant control over the loyalty conditions and value of the incentive. However, as I said in my Marketing Land piece, the online-to-offline analytics are also a major aspect of this.
Assuming everything goes well with the test, Google aims to expand the capability to other types of ads in the future. For example, one could imagine an offer or loyalty reward in a traditional search ad, which would then utilize the Google registered credit card “infrastructure.” The original search ad could be tracked to the offline point of sale in the manner described. Currently this isn’t possible.
It’s very interesting from multiple angles. What do you think?